AUD/USD Price Forecast – Australian Dollar Continues to Press Higher

The Australian dollar has rallied a bit during the trading session on Tuesday, as we continue to see US dollar selling in general. That being the case, the market is likely to see more upward pressure over the longer term, due to the fact that stimulus in the United States is so heavily weighing upon the greenback. Furthermore, the market is likely to continue with a rush into commodities longer term, mainly due to the fact that stimulus throws money towards “things” that we attach the Australian dollar to.

AUD/USD Video 06.01.2021

To the downside, I see plenty of support near the 0.75 level that extends down to the 0.74 handle. The 50 day EMA sits in that general vicinity, the market continues to be a “buy on the dips” type of scenario, so I do think that we will eventually build up enough momentum to break above the 0.7750 level. After that, I believe that the Aussie goes looking towards the 0.80 level, which of course is a large, round, psychologically significant figure. I do believe that the US dollar will continue to have issues going into 2021, but it is also worth noting that the US Dollar Index is sitting at a major support level, which of course will show itself in various currency pairs, this one included.

Unless we have some type of major “risk off scenario”, then I do not really have a scenario in which I am looking to sell this market. I do believe that the pullbacks will come occasionally, but those should be thought of as potential buying opportunities. That of course is the very essence of taking advantage of a trend.

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